EUR/USD 5 APRIL 2012

EUR/USD – follow me on twitter @fxdailyforecast and stocktwits.com/fxg

No trade setup on Euro yesterday. Price fell yesterday and took out the 3132 A low starting a reversal on this time frame.

FOR TODAY:

We can only sell up at the 618/786 of this swing, or buy a BF786, both after cs formations.

If we don’t get the cs formations we are looking for then we don’t trade.

SHORT: WILL ONLY BE GOING SHORT IF:

We need price to retrace to the 618/786 much higher followed by bearish cs formations. Place stop 13 pips above the cs formation, max 1% risk. Limits will be defined at time of entry.

If we don’t get the cs formations we are looking for then we don’t trade.

LONG: WILL ONLY BE GOING LONG TODAY IF

We get to the BF786 followed by a bullish cs formation. Place stop 10 pips below the low of the cs formation, max 1% risk. Limits for this trade will be defined at time of entry.

If we don’t get the setup we are looking for then we don’t trade.